Which of the Following Is an Actual Cause of the GFC

question 45

Multiple Choice

Which of the following is an actual cause of the GFC?

• A) The related very low saving rates in countries such as the USA and Australia.
• B) Global imbalances in saving and borrowing, which allow high borrowing in one country to be financed by high saving in others.
• C) Globalisation, which has greatly increased the extent to which an impulse arising in one country is transmitted around the world.
• D) All of the above.

---

Definitions:

Milgram Experiment

A psychological experiment conducted by Stanley Milgram in the 1960s to study obedience to authority, where participants were instructed to administer electric shocks to another person.

Stanford University Prison Experiment

A psychological study conducted by Philip Zimbardo in 1971 at Stanford University, where students were assigned roles of prisoners and guards to explore the effects of perceived power.

Generalization

Drawing a conclusion about a certain characteristic of a population based on a sample from it.

Logical Support

The provision of reasons or evidence to justify a claim or argument.